Are some price patterns manipulated?

Hello all,

I'm a bit curious to know whether price patterns are manipulated in some instance.

For eg., if a scrip(especially the low volume ones) is in a trading range (say, rectangle) for some time, it may be manipulated by some operators and make the stock to appear breakout. Immediately others(analysts, retailers, 'tip' givers, forums, etc) looking at the breakout with good volume tend to buy it, making the stock to move up. Of course its harder in case of high liquid stocks.

I would like to discuss on these topics:
1. Are the price patterns manipulated generally? More specifically are they manipulated at least in the Indian context?
2. How difficult it is for operators to manipulate them?

I request all to share your views on the same.

Thanks and regards,
Praveen.

Thats ryt and also there are many Tip givers working for the same ppl. So even if there isnt a valid breakout public is lured in. Thats y some senior chartist say Buy on Pullback. A stock cannot go up without consolidating ryt.

So IMHO buy on a pullback is an excellent strategy.


thanks

hi,

waiting for a pullback might regret you!!!!!
also a pullback means a ROCKET which has lost power to move up????

I have often notice that Great moves dont have pullback in the said time frame , but get pulled or consolidate in the lower time frame.

And ya, also there can be false breakouts and we could be trapped in.

so the best trick is to wait for the breakouts of only those supports and resistance which have been retested 2 or more times and then breakout.

thanxs
winston

HI Winston,
Pullback are very common before a stock moves up or down.
im not just talkin of a pattern im talkin in general.
Breakout trades are for Agressive traders not for conservative traders.

It all depends on ur risk Capacitance.



Thanks

Why? Whats the reason?

Praveen.

Manipulation and False breakouts

Doesn't manipulation affect all types of trading? I don't think so it affects only pattern traders, who trade breakouts.

Praveen.

Yes agree, but then u can add up flters to avoid False and Manupulative Breakouts.
Say for a example a breakout with a Candlestick pattern or inside bar break.

I guess it's best for non-pros who use system trade to stick onto the big boys...
They can't be manipulated

I am a pretty successful trader of options...but I am pretty much struggling with breakouts...still fine tuning my system..